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Nationstar loan class action lawsuit overview:Â
- Who: James W. Groves and Judith Bartell-Groves filed a class action lawsuit against Nationstar Mortgage LLC d/ba/ RightPath Servicing.Â
- Why: Groves and Bartell-Groves claim Nationstar unlawfully denied loan borrowers loss mitigation assistance during the COVID-19 pandemic.Â
- Where: The class action lawsuit was filed in Ohio federal court.Â
Nationstar wrongly denied Ohio loan borrowers’ loss mitigation assistance during the COVID-19 pandemic, a new class action lawsuit alleges.Â
Plaintiffs James W. Groves and Judith Bartell-Groves claim Nationstar’s denial of eligibility for loss mitigation assistance “was improper as each such denial was based upon an eligibility requirement that does not exist.”Â
Nationstar denied loan borrowers eligibility for loss mitigation assistance on the basis that the principal and interest (P&I) portion of their monthly mortgage would not decrease, according to the Nationstar class action.Â
Groves and Bartell-Groves argue Nationstar’s “improper” denial of eligibility was based on “false pretenses” and constitutes “a failure to act in compliance with the regulations of the HUD Secretary and evidence a lack of reasonable skill, care and diligence.”Â
Further Nationstar failed to act in good faith “and with fair dealing with respect to each of the loans,” the Nationstar class action alleges.Â
Nationstar class action claims lender wrongly denied loss mitigation relief for loan borrowers
“Nationstar, in sending correspondence stating or otherwise communicating to Plaintiffs and each Class member that they were ineligible for a Recovery Modification based upon false pretenses, engaged in conduct constituting dishonest dealings and misrepresentations,” the Nationstar loan class action states.Â
Groves and Bartell-Groves want to represent an Ohio class of loan borrowers who have mortgage loans secured by residential real property and insured by the Federal Housing Administration.Â
They accuse Nationstar of violating the Fair Debt Collection Practices Act and the Ohio Residential Mortgage Licensing Act.Â
Groves and Bartell-Groves demand a jury trial and request declaratory relief along with an award of actual, punitive and statutory damages for themselves and all class members.Â
A consumer filed a separate class action lawsuit against Nationstar last November, arguing the company has a history of making unauthorized withdrawals from its customers’ bank accounts.Â
Did Nationstar deny you loss mitigation assistance during COVID-19? Let us know in the comments!Â
The plaintiffs are represented by Marc E. Dann, Daniel M. Solar, Brian D. Flick and Michael A. Smith Jr. of Dann Law.
The Nationstar loan class action lawsuit is Groves, et al. v. Nationstar Mortgage LLC, Case No. 1:22-cv-02072, in the U.S. District Court for the Northern District of Ohio.
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14 thoughts onNationstar class action claims company denied loan modifications allowed during COVID
How can our government agencies that insure most of our mortgages let this happen, especially to the disabled, elderly and Veterans?!?!?! Seems very predatory, I mean, isn’t the post forbearance options that the CFPB has on their website legally binding? I’m in the same boat, disabled because of Long COVID brain dysfunction and severe neurological and cognitive decline. Took a 6 month forbearance and was supposed to get deferral for those payments and 6 month extension to keep regular contractual payments, but was denied all loss mitigation and now 15 months later, the served me with foreclosure papers here in South Carolina. I cannot even find a foreclosure defense lawyer and I too have phone recordings and proof of their fraud and lies. USDA backed, Ginnie Mae owned, and Nationstar dba Mr. Cooper is the loan servicer from Hell. I pray that God Bless you all !!!!
Exactly what Suzanne (above) said happened to her, happened to me. I have all the paperwork. I want to join this class action lawsuit. Please contact me — there is too much that happened to write it here. This has been torture. Unbelievable , but they
This mortgage companies needs to be held accountable for their financial services. They have charged us numerous times and did they were going to foreclose on our home in February of 2022. Caould i get someone to call me about this lawsuit
This mortgage companies needs to be held accountable for their financial services. They have charged us numerous times and did they were going to foreclose on our home in February of 2022.
We had Mr Cooper and a VA loan, took a forbearance because I lost my job, had premature twin and COVID all at once. Applied to programs to get back on track, was approved and sent it signed and notarized. Suddenly we got a letter our serviced had changed to Rightpath. We couldn’t access our Mr Cooper account anymore and had to start the process all over with Rightpath. Website didn’t work, emails are never received and NOW I don’t out Rightpath and Mr Cooper are the same company!!! We been doing loan modification paperwork for literally years now, still haven’t had an approval or denial since the original one. All the while the programs we were Eligible for that were the most beneficial to us are closing and we are STILl waiting. They are telling us our principal is going from 245k to over 400k! What!!!!!!
I want to be part of class action suit.
We have been in are house 35years are mortgage has been sold over and over we been with Natiostar 10 years
Iam 60 year old male 100 disabled my wife 62years old 100 disabled we have 100 custody of are granddaughter she has been home schooled the last 3/half years she sees a Counselor and a DR … sorry about my spelling 8 grade that’s all I have
I want to be part of the COVID loss mitigation Me. Cooper lawsuit. I took a forbearance due to related health problems and they agreed to do a deferment at the end of it. When my deferment ended they said the deferment they agree to was no longer available and told me I had to apply now for loss mitigation. So, I did that and I was denied for loss mitigation. I had to appt for a high interest personal loan and an FHA loan to pay over $30,000 to get my mortgage reinstated.
We were on the Covid forbearance and was told a few days ago that we have been on the forbearance for 24 months when we should have only had 18 and it was our fault and said we had to pay 6 months before they would even consider any kind of modification. How is it our fault they approved the 24 months? We didn’t ask for them.
NH here…we have been fighting for our documents since June when our mortgage was sold to Mr Cooper
In October we finally got them. Signed them sent them back for the relief payment. Said we were approved just needed to sign notrize and send back which we did! waited waited then they said we needed 2 payments to book this program/ which NO WHERE IN THAT DOCUMENT did it say as such. I called numerous times. Finally I have in email that they will honor the relief settlement thru nationstar as long as we make 3 payments
Which we did. Just received a letter saying we were denied bc the documents were not sent in in time! total lie!! I have all the documents and all of the calls are recorded
Not to mention the emails I have saying they will honor the massive debt relief payment thru the USDA!
We are in Missouri. Our mortgage company was US Bank and they sold our loan acct to Right Path Servicing DBA Mr cooper/NationStsr LLC. This happened around the time my husband got severely sick with Covid Delta and was admitted to the hospital on July 18 2021 due to the failed treatment of Ivermectin & Hydroxychloriquine that a physician forced him to take and it burned the lining of both his lungs giving him Bilateral Pulmonary Fibrosis, AFib, Myocardittis and was put on Oxygen 24/7. US Bank had our loan on Forebearance and had been following up with UNUM insurance company. My husband due to Covid 19 is on Oxygen 24/7 present day since July 2021. He lost his job on May 2022. He applied for disability SSI which just got approved in Dec 2022. We did not receive any communications of our loan getting transfered to Right Parh. I called them last week and they said we are $19,990 past due. But that was put onto the back of the loan by US Bank Forebearance claim. They Said last Thursday not to worry, you are not near any foreclosures. Did not offer us any help or solutions to help us. We had applied for a remodification but got denied because they said the denial was for the “flex modification” that required no medical documents. That now we have to fill out the 4 page remodification to include the new income under SSI. AND not to worry because we are not anywhere near a foreclosure standing. So just yesterday, we received a certified letter in the mail stating we have to pay $19,990 in full by 2/22/2023. Or else it will be in foreclosure. This letter came in an envelope printed as “Mr Cooper and DBA Nationstar Mortgage LLC (1st time we have ever seen this) I would like to see if anyone can help. We are a family of 6! I work in healthcare and took a paycut to work from home to take care of my husband.
Nationwide d/b/a/ Mr. Cooper, denied us loss mitigation and worse. Incompetence, corruption and just plain incorrect knowledge of actual job-is what this company is about.
I was denied mortgage assistance during the Covid era from Mr Cooper/Nation Star also they refused to give me a deduction rate since I’ve been with them sino2020.